Daily Brief Industrials: Samsung C&T, Bizlink Holding, Samsung SDI, Boeing Co, FTAI Aviation , Jetblue Airways, Epwin Group PLC and more

• Today, the Financial Services Commission of Korea announced treasury stock rule improvements: (1) No new share allocation to treasury shares during equity spinoffs. (2) Strengthened disclosure requirements.
• No mandatory cancellation may disappoint the market. Nevertheless, the decision not to issue new shares during equity spinoffs amplifies the volume targeted during subsequent tender offers, potentially intensifying price impacts.
• Also, enhanced disclosure for treasury stocks, especially for companies with over 10% holdings, may trigger significant trading events based on pre-information about holdings and disposals.

• In this insight, we take a look at Quiddity’s flow expectations for the March 2024 index rebal event.
• Based on current data, I expect there to be one DEL for the TDIV index in March. I also expect the AUM assumption to change.
• According to my calculations, these changes could collectively trigger index flows of ~US$150mn one-way resulting in some index members expected to have multiple days of volume to trade.

• The de facto beneficiary of the EU EV subsidy, and historically, 46% of the sales were generated from Audi and BMW EVs. 
• Valuation has hit the trough, but with no positive catalyst in sight, it is difficult to make a bull case for Samsung SDI (006400 KS) .
• If the EU put up higher trade tariff for Chinese EV, it could jolt up SDI’s share price but until then, stay away. 

• Now that the U.S Big 4 airlines have all reported their earnings, let’s look at some of the key trends underpinning the airline industry this quarter.
• The industry continues to be marred by several macro trends, including a triple whammy of inflation-driven increasing maintenance and labor costs, supply chain issues, and the unreliability of a major supplier (Boeing).
• Boeing’s perennial woes seemed to be a major point of discussion as every Big 4 airline faced an analyst question about it during their earnings calls.

Key points (machine generated)

• FTAI’s Module Swap offering is expected to have strong growth potential based on the company’s performance and market conditions.
• The number of Module Swap customers is projected to increase from 25 in 2022 to potentially 75-100 by 2025.
• The average number of Module Swap orders per customer is expected to increase from 2 in 2022 to potentially 3 in 2023.

This article is sourced from an online content aggregator through publicly available sources and is displayed below for general informational purposes only. This article was originally published 3 months ago on Value Investors Club.

• Following JetBlue’s 2023 results, we refresh estimates to reflect a small operating loss and a near-$200m net loss in 2024.
• Management is focused on cutting costs and restructuring the network, but without meaningful self-help, losses and cash burn may continue in 2025.
• Liquidity and leverage concerns are significant for JetBlue but we highlight reduced capacity could boost commercial performance as early as 2Q, providing a glimpse of distant recovery prospects.

Epwin Group’s H223 trading was robust and management has navigated inflationary pressures well. As a result we have increased our FY23 and FY24 underlying operating profit estimates by 13.6% and 10.3%, respectively. Longer term, well-established growth trends imply that Epwin is well placed to leverage off increasing demand for its energy-efficient and low-maintenance building products. Management action contributed to overall margin expansion, a feature that we expect to continue in FY24. Epwin offers an attractive investment case with the potential for uplifts from additional self-funded M&A. It trades on a P/E ratio of 7.4x, some 30% below the long-term average of 10.7x, and yields 6%.